KUALA LUMPUR: Government intervention may be needed if the material cost problem persists and becomes too serious, the Malaysian Property and Property Developers Association (REHDA) said.
Chairman Datuk Soam Heng Choon said industry players have always advocated for a free market, but noted that global phenomena such as rising prices for oil, copper, bauxite (to make aluminum) and iron ore (to make steel) over the past 12 months was inevitable.
“In fact, this week alone there has been a significant increase in the prices of aluminum, copper and steel,” he said at a press conference to announce the study of the REHDA’s real estate market for the first half of 2021 (1H21) and the outlook for 2H21 and 1H22.
Soam said a month or two ago that the price of steel had gone from RM 3,400 to RM 3,100, but yesterday it dropped back to RM 3,300 to 3,400.
“So the prices are volatile and still high,” he added.
The price of locally produced bricks has also increased due to the lockdowns, but this problem is expected to normalize in the coming months as restrictions have been lifted.
“As for others like the cooper, it will actually lead to a substantial increase in other related steel materials such as reinforcing bars, aluminum windows, mechanical and electrical equipment or transformers.
“So various parties have engaged the government, especially the Department of Public Works to see how they can come to help the industry, and we think a strong engagement needs to be made between the industry and the manufacturers to help. stabilize the current situation, “he noted.
Soam said REHDA projects a full recovery in the industry from 2022, as evidenced by the survey, where respondents were more optimistic about the outlook for 1H22, provided that the economy, the job market and wages go up.
Eighty-seven percent of those surveyed believe that the endemic phase will help speed up the recovery of the housing market between six and 24 months.
Most of the 180 respondents in total, who were pessimistic about the market in 2H21, 36%, planned to launch their projects, and the majority 64% have no development to launch, mainly citing unfavorable market conditions and higher unsold stocks.
Eighty-nine percent of those with future launches expect sales to be 50 percent and less. A total of 9,319 strata, 5,549 lots and 208 business units will be introduced to the market in 2H21.
Developers are also eager to participate in the Home Ownership Program (HOC) to boost sales.
He said 63 people interviewed had started their projects in 1H21, with most of the units sold being apartments / condominiums and two- or three-story townhouses with a sale price of between RM250,001 and RM500,000.
As for the commercial units, a total of 141 units were launched and bought by first-time buyers for the most part.
On unsold units, he said 82% and 67% of respondents have less than 30% residential and commercial units, respectively. Bernama